Giannopoulos, George, Lianou, Alexandra and Elmarzouky, Mahmoud (2023). The Impact of M&As on Shareholders’ Wealth: :Evidence from Greece. Journal of Risk and Financial Management, 16 (3),
Abstract
This study aims to investigate the effect of mergers and acquisitions (M&A) on shareholders’ wealth. Additionally, this study investigates the impact of the economic crisis during 2007–2008 on the shareholders’ perceptions of gaining additional value from mergers and acquisitions. In this paper, a sample of 84 M&As from 2006 to 2015 in Greece are studied to investigate the effect on shareholders of bidder companies. We find significantly negative abnormal returns just before the announcement of M&A, which negatively affects the bidder firms’ value. It is also observed that after 2009 M&A cases decreased, maybe because of the crisis in Greece that changed the investors’ perception of a value-destroying event. Companies that engage in M&A activities during economic downturns tend to experience a decline in shareholder value. This could be due to various factors, such as increased uncertainty and risk associated with such activities during economic uncertainty. By understanding the potential impact of such activities on shareholder value, companies can make more informed decisions about whether and when to pursue M&A opportunities.
Publication DOI: | https://doi.org/10.3390/jrfm16030199 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Accounting College of Business and Social Sciences |
Additional Information: | Copyright © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). |
Uncontrolled Keywords: | bidders,mergers and acquisitions (M&As),shareholders wealth,value creation,Finance,Economics and Econometrics,Accounting,Business, Management and Accounting (miscellaneous) |
Publication ISSN: | 1911-8074 |
Last Modified: | 04 Nov 2024 09:17 |
Date Deposited: | 24 Mar 2023 10:56 |
Full Text Link: | |
Related URLs: |
https://www.mdp ... 1-8074/16/3/199
(Publisher URL) http://www.scop ... tnerID=8YFLogxK (Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2023-03 |
Published Online Date: | 2023-03-14 |
Accepted Date: | 2023-03-04 |
Authors: |
Giannopoulos, George
Lianou, Alexandra Elmarzouky, Mahmoud ( 0000-0001-9867-6057) |